Credit rating agency Fitch has said that Dangote Refinery plans to sell a 12.7 per cent stake in 2024 for loan servicing. The stake on offer for sale came after Nigerian National Petroleum Company Limited (NNPC) stepped back on its plan to acquire a 20 per cent stake in the refinery.
In 2021, the NNPC acquired a 7.25 per cent stake in the refinery for $1.0bn, with an option to purchase the remaining 12.75 per cent stake by June 2024.
The NNPC later said it reviewed the investment and decided not to invest any further.
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
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“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,” the spokesperson of the company Olufemi Soneye said in a statement.
Fitch said the NNPC’s decision may impact Dangote Group’s ability to service loans hence the decision to sell the stake.
“Since the option has not been exercised, the group plans to divest a 12.75 per cent in DORC in 2024.
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“The group intends to service its significant syndicated loan maturing in August 2024 from the equity divestment. However, timely divestment and meeting the imminent maturity are highly uncertain in our view,” Fitch said.
Last month, Dangote Group led by its president Aliko Dangote had a face-off with oil regulators in the country over the refinery.
